EU Finally Agrees on Comprehensive Crypto Regulatory Framework

The European Union (EU) has finally inked an agreement with respect to its comprehensive crypto regulation through the Markets in Crypto Assets (MiCA) framework. The agreement was reached following productive regulations at the trilogue meeting featuring the European Commission, the European Parliament, and the Council of the European Union.

The agreement to pass MiCA is the first comprehensive attempt by the West to bring digital currencies under a regulatory subjection, one which many has argued is necessary for the growth of the industry. The update about the agreement was shared by Stefan Berger, a member of the European Parliament and rapporteur on the regulatory affairs concerning MiCA.

“MiCA Trilogue: Breakthrough! Europe is the first continent with crypto asset regulation. Parliament, Commission & Council have agreed on balanced #MiCA. For me as reporter it was important that there is no ban on technologies like #PoW,” he said via Twitter thread. “We have a technology-open approach: #Krypto asset providers should in future disclose the energy consumption and the impact of assets on the environment. The basis for this will be Regulatory Technical Standards (#RTS).”

MiCA Trilog: Durchbruch! Europa ist der erste Kontinent mit einer Krypto-Asset Regulierung. Parlament, Kommission & Rat haben sich auf ausgewogene #MiCA geeinigt. Für mich als Berichterstatter war wichtig, dass es hier keine Verbannung von Technologien wie #PoW gibt /1

— Stefan Berger (@DrStefanBerger) June 30, 2022

Thanking the negotiation which took years to arrive at, Stefan said he believes the emergence of MiCA is a success for the European Union and will constitute a global standard for other regions to emulate.

Implementing the EU Regulatory Framework

While the agreement to establish MiCA is on track to be signed into the European Union law, implementation will notably prove to be a key challenge that may cause the bill years before it is at play across all of the EU’s agencies.

With the central idea in the formulation of the comprehensive regulation being to protect investors, the activities of the Crypto Assets Service Providers (CASPs) will be supervised and licensed by the European Securities and Markets Authority (ESMA).

TheCoinRise also reported earlier that a partial agreement has been reached by the Council to establish a new Anti-Money Laundering Authority (AMLA). Both bodies when fully functional will play a role in bringing enforcement to the digital currency ecosystem.